Rental losses when income is over $150k (For Non-REP)

[Ruben Velazquez]

Hello BP!

I'm looking to learn more about options exist when you no longer qualify for Rental Losses as a Non-REP when income is above $150K. I understand I would need to work as a Real Estate Professional (REP) and quit my engineering career to qualify, but I can't do that yet. I would imagine other BP folks have gone through this situation before and they may have some advise based on their experience.

My practical thinking (assumption) would be to separate the properties from personal taxes and is can be done via an LLC and the LLC does its own taxes?

I'm also look for an experienced CPA with various of rental properties and clearly understands the REP status to try to justify my situation based on logged hours since I just finished rehabbing 90% of two 100 year old MFs in CA, the other 10% was delegated to a Lic. Electrician.

Thanks,

Ruben 

[Basit Siddiqi]

Owning the properties inside of an LLC will not change the character of your income.